Hi, I am hoping someone with experience in Canadian Payroll can help me with an issue we are having.

At the client that I am currently working for, they have a large number of claims that they cannot recover from employees. Because of this, CRA requires us to T4 the employee for the amount of the claim (salary paid in error). The problem is that once a claim has been created in SAP, everything has been backed out, including taxes paid to CRA. According to CRA guidelines, the money should not be backed out (claim created) until the money has been recovered.

To satisfy CRA Guidelines, when the money is not recovered, the claim needs to be reversed. How do we do this in SAP? Is there a way to reverse a claim?

I will also log an incident with SAP to see if they can provide a solution.